Alabama Motor Fuel Distributor Tax Surety Bond

The Alabama Department of Revenue, Business & License Tax Division, Motor Fuels Section is responsible for the collection of excise tax of distributors, terminal operators, permissive suppliers, suppliers, exporters, importers and blenders of motor fuels. The department provides online system for tax reporting and an EFT system for tax payments.

The Code of Alabama 1975, Title 40, Chapter 17, Article 4 provides the requirements for the wholesale oil license. Wholesale fuel suppliers are required to pay state taxes on fuel sold and may include obtaining a surety bond to ensure all taxes are paid that are due to the Department. In the event the taxes are not paid and a bond was in place, the Department may place a claim against the bond.

Surety Bond and License Requirements:

1. Complete the License Application for Motor Fuel Distributor and pay the $50 application fee.
2. Make payment of all taxes, penalties, and interest which may be now due or may become due.
3. Submit a monthly report by the 22nd of each month.
4. There may be a surety bond requirement and the State of Alabama Department of Revenue will determine the amount of the bond.
5. An annual report is due October 14 of each year.

How Much Will a Motor Fuel Distributor Bond Cost?

The premium that you pay for an Alabama Motor Fuel Distributor Tax Surety Bond is dependent on credit and the bond amount required. Our rates start at 1% of the bond amount with good credit. Contact our Surety Bond Specialists for a free quote.

Did You Know?

Alabama taxes are due monthly and can be filed electronically.

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